Fujitsu slapped down in Land of the FALLING YEN

Homegrown demand wanes for mobes, PCs and network products

Revenue dropped 2.4 per cent at Japanese IT giant Fujitsu to ¥1,171.5bn (£6.6bn, $9.9bn) in the firm's third-quarter results, when compared with the same period last year, although a fall in the yen propped up non-domestic revenue levels.

Sales in Japan took the biggest hit, falling 8.6 per cent due to a decline in shipments of mobile phones, PCs, and network products.

In contrast, revenue outside Japan rose 7.6 per cent, with the company attributing the increase to movements in the foreign exchange market. A weaker yen helps make Japanese exports more competitive overseas.

However, higher procurement costs in Europe have had a "negative effect" on business, it said.

Meanwhile, operating profit dropped around nine per cent to ¥33bn (£186m), compared with the same quarter last year.

President Masami Yamamoto said the company is on track to achieve operating profit of ¥185bn (£1bn) for the year, up from ¥142.5bn (£817m) from its full financial year in 2013.

"Fiscal 2014 is an important first step on our way to achieving our medium-term management plan goals of fiscal 2016 operating profit of ¥250bn (£1.4bn)," he said.

For the full financial year 2014/15, Fujitsu expects revenue of ¥4,800bn (£27bn), unchanged from 2013/14.

Profit before tax for the year is expected to rise by ¥10bn (£56m) to ¥200bn (£1.13bn) due to the "beneficial" effect of the foreign exchange market. ®